State of Oregon’s wildfire insurance premium may increase after the 2014 fire season

Beaver Fire
The Beaver Fire, August 12, 2014, in northern California. Photo by Bill Gabbert.

The state of Oregon has an insurance policy with Lloyd’s of London that helps to cover the cost of suppressing wildfires during busy fire seasons. The premium for that policy has been about $2 million. But before the state receives any payout from Lloyd’s they have to spend $20 million to cover the deductible, after which the insurance company will cover the additional costs up to $25 million.

Two consecutive bad fire seasons has state officials thinking that they may have to pay more for that policy next year.

Below is an excerpt from an article in the Bend Bulletin:

…Like car insurance, where premiums go up when drivers have accidents, one thing is clear: If the state can land another policy through insurance giant Lloyd’s of London to help with rising wildfire costs, it’s going to have to cut a bigger check.

“We’re fully expecting that based on the experience of the last two years that we’ll probably be paying more for insurance if we can get a policy in the coming year,” Rod Nichols, spokesman for the Oregon Department of Forestry, said Wednesday.

The prospect of missing out on wildfire relief has rural lawmakers talking about thinning and clearing fuels from forests and addressing the effects of climate change.

“One of these years we’re going to light up Southern Oregon and have a fire season you won’t believe,” Sen. Alan Bates, D-Medford, said.

Oregon has had a wildfire insurance policy for nearly four decades…

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Author: Bill Gabbert

After working full time in wildland fire for 33 years, he continues to learn, and strives to be a Student of Fire.

One thought on “State of Oregon’s wildfire insurance premium may increase after the 2014 fire season”

  1. Insurance rates rising will.put a new meaning to forest management just like the costs rising in aviation

    Anyone in the LMA world thinkin that insurance rates at the State level or even the Feds are not going to rise or put some more stringent requirements on forest management are in for ruuuude awakening…

    Only a matter of time……

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